TX
Texas House Bill HB3287

Texas 2025 - 89th Regular

Texas House Bill HB3287 Compare Versions

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1-89R25968 SCR-F
2- By: Bell of Kaufman, Button, Hefner, Romero, H.B. No. 3287
3- Leach
4- Substitute the following for H.B. No. 3287:
5- By: Button C.S.H.B. No. 3287
1+89R4650 SCR-F
2+ By: Bell of Kaufman H.B. No. 3287
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107 A BILL TO BE ENTITLED
118 AN ACT
129 relating to construction contract trust funds.
1310 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14- SECTION 1. Subchapter A, Chapter 162, Property Code, is
15- amended by adding Section 162.011 to read as follows:
16- Sec. 162.011. FUNDS RESERVED OR REQUIRED TO BE RESERVED.
17- (a) Funds reserved or required to be reserved by a property owner
18- under Section 53.101 are trust funds under this chapter only to the
19- extent that:
20- (1) beneficiaries have perfected a mechanic's or
21- materialman's lien claim to those reserved funds under Subchapter
22- E, Chapter 53; and
23- (2) the property is subject to a senior lien in favor
24- of a lender.
25- (b) If an owner finances the construction of improvements to
26- real property through a loan from a lender independent of the owner
27- that is secured wholly or partly by a lien on the property, funds
28- reserved or required to be reserved under Section 53.101 are not
29- trust funds under this chapter until the lender disburses those
30- funds to the owner.
31- (c) Notwithstanding Section 162.003(a), funds reserved or
32- required to be reserved under Section 53.101 that an owner in good
33- faith releases to a contractor or subcontractor before the end of
34- the period described by Section 53.101 are not trust funds under
35- this chapter.
11+ SECTION 1. Section 162.001, Property Code, is amended by
12+ adding Subsection (a-1) to read as follows:
13+ (a-1) Except as provided by this subsection, funds reserved
14+ or required to be reserved under Section 53.101 are trust funds
15+ under this chapter. Funds reserved or required to be reserved under
16+ Section 53.101 for the construction or repair of a new or existing
17+ single-family house, duplex, triplex, or quadruplex, to be used for
18+ residential purposes, including improvements appurtenant to the
19+ residence, are not trust funds under this chapter.
3620 SECTION 2. Section 162.003(a), Property Code, is amended to
3721 read as follows:
3822 (a) An artisan, laborer, mechanic, contractor,
3923 subcontractor, or materialman who labors or who furnishes labor or
4024 material for the construction or repair of an improvement on
4125 specific real property in this state is a beneficiary of any trust
4226 funds:
4327 (1) paid or received in connection with the
4428 improvement; or
4529 (2) reserved or required to be reserved under Section
4630 53.101 in connection with the improvement.
47- SECTION 3. Section 162.031, Property Code, is amended by
48- adding Subsection (a-1) to read as follows:
49- (a-1) A trustee's failure to reserve funds that were
50- required to be reserved under Section 53.101 for the construction
51- or repair of a new or existing single-family house, duplex,
52- triplex, or quadruplex, to be used for residential purposes,
53- including improvements appurtenant to the residence, is not
54- misapplication of trust funds under this section.
55- SECTION 4. Section 162.032, Property Code, is amended by
56- adding Subsection (d) to read as follows:
57- (d) A trustee is not liable for any damages to a beneficiary
58- for misapplication of trust funds unless the trustee misapplied
59- trust funds with intent to defraud.
60- SECTION 5. Subchapter B, Chapter 162, Property Code, is
31+ SECTION 3. Subchapter B, Chapter 162, Property Code, is
6132 amended by adding Section 162.034 to read as follows:
6233 Sec. 162.034. ATTORNEY'S FEES AND COSTS. The court shall
63- award costs and reasonable attorney's fees to a prevailing party in
64- an action brought under this chapter.
65- SECTION 6. (a) Except as provided by Subsection (b) of this
34+ award costs and reasonable attorney's fees to a beneficiary who
35+ prevails in an action brought against a trustee under this chapter.
36+ SECTION 4. (a) Except as provided by Subsection (b) of this
6637 section, the changes in law made by this Act apply only to a
6738 construction contract that is entered into on or after the
6839 effective date of this Act.
6940 (b) Section 162.034, Property Code, as added by this Act,
7041 applies only to an action commenced on or after the effective date
7142 of this Act.
72- SECTION 7. This Act takes effect September 1, 2025.
43+ SECTION 5. This Act takes effect September 1, 2025.